When the Interest Rate Increases,the Opportunity Cost of Holding Money

question 97

Multiple Choice

When the interest rate increases,the opportunity cost of holding money

• A)increases,so the quantity of money demanded increases.
• B)increases,so the quantity of money demanded decreases.
• C)decreases,so the quantity of money demanded increases.
• D)decreases,so the quantity of money demanded decreases.

---

Definitions:

Motivation

The intrinsic or extrinsic factors that stimulate people to act or behave in a certain way.

Moralizing

The act of expressing opinions about the rightness or wrongness of actions or behavior, often in a judgmental way.

Prescriptive

Relating to the imposition or application of rules or recommendations.

Counseling

A professional guidance process that helps individuals resolve personal, social, or psychological challenges and difficulties.